The Melbourne auction market commenced winter in typically resilient form, recording yet another robust clearance rate despite distractions from the weather and the federal election campaign.
Melbourne reported a clearance rate of 74.4 percent on Saturday, just below the 75.2 percent recorded over the previous weekend, but well below the 84.5 percent recorded over the same weekend last year.
Auction numbers were down with 841 listings compared to last weekend’s 1067 – although higher than the 241 auctioned over the same weekend last year, which was impacted by the Queen’s Birthday holiday break.
The northern suburbs continue to generally lead the regional results recording a number of boom-time 80 percent plus clearance rates over recent Saturdays. The eastern suburbs, however, remain regional underperformers, now consistently recording the lowest rates.
The north east recorded the highest clearance rate with a strong 86.1 percent, followed by the north with 83.6 percent. The inner south had the highest number of sales at 89 and recorded a clearance rate of 80.2 percent. Then the west 76.6 percent, the south east 76.3 percent, the inner city 72.5 percent, the inner east 70.4 percent and the outer east, well down this weekend, at 66.3 percent.
Melbourne has commenced the winter auction season with another weekend of robust results and reflecting the remarkable consistency of the market so far this year.
Rising buyer activity in Melbourne reflects the impact of low and falling interest rates and perhaps the reinvigoration of the investor market driven by the prospect of possible changes to property taxes.
Despite the near-certainty that rates will remain on hold over June following the reserve Bank’s meeting this week, the likelihood for a near-term cut remains. This was reinforced with more signs of weakening inflation in the latest ABS GDP data for the March quarter released last week.
A predictably good start to the Melbourne winter auction market with the prospects of a resilient season ahead. The market is set for pause mode next weekend for the Queen’s Birthday holiday break with just 250 auctions likely to be conducted.
Published on www.domain.com.au by Dr Andrew Wilson, Domain Group Chief Economist